The box on your wall is called an Optical Network Terminal, or ONT for short. It's a small piece of equipment installed by Openreach, the company that owns and maintains the UK's broadband network, and it acts as the entry point for your Full Fibre broadband connection. It's not a router, and it's not a traditional modem. It's specific to Full Fibre broadband, and it's completely normal to. You'll typically find an Optical Network Terminal (ONT), or fiber box, in a central part of your home, like on the outside of your home, in your garage or even in a closet, and it plays a vital role in bringing fiber internet to your household via your internet service provider. There are several lights on the ONT, when these lights change colour or flash, it means something is happening. It is the connection point between your Internet Service Provider's (ISP) network. A terminal box, also known as a fiber optic terminal box or FTTH (Fiber to the Home) terminal box, is a compact enclosure used to house the terminations of fiber optic cables.
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